Zomato shares soar over 18% as Q1 loss narrows

Shares of Zomato soared over 18 per cent in Tuesday’s trade after the online food delivery platform said its consolidated net loss narrowed in the June quarter. The stock climbed 18.44 per cent to Rs 54.90 on the BSE. This was the biggest gain for the stock in a year.

Zomato’s consolidated net loss for the quarter almost halved to Rs 186 crore due to higher income. The company had reported a net loss of Rs 360.7 crore in the year-ago quarter.

“If you see all the new age tech companies that have come all of them have the same issue which is the path to profitability is not clear, now suddenly they are talking about profitability. I am happy that they are talking. I would want to see some proof of that and happy to miss the first leg. We can always jump in in the second leg,” Sridhar Sivaram, Enam Holdings said in an ET NOW interview.

Following Zomato’s results, Kotak Institutional Equities has lowered its FY2023-25 loss estimates. The brokerage sees the fair value of the stock at Rs 80 now against Rs 79.